FinanceAmerica v. Harvey E. Hall, Inc.
Delaware Superior Court
380 A.2d 1377 (1977)
Harvey Hall owned an appliance store, Harvey E. Hall, Inc. (HEH) (defendant), which bought inventory financed by Sylvania and Maguire, who in turn required Harvey and his wife Anna Hall (defendant) to sign a personal guaranty addressed specifically to Sylvania and Maguire. Sylvania and Maguire later both assigned their rights under the guaranty to FinanceAmerica (FA) (plaintiff). After Harvey Hall died, Anna ran the store for several more years before closing it, leaving nearly $7,000 owed to FA. FA sued Anna under the guaranty, and Anna moved to dismiss on the ground that a special guaranty cannot be assigned to a party outside its original addressees.
Whether a right to receive a benefit under a special guaranty may generally be assigned to a party not named in the guaranty.